Prime office rents up 0.6% q-o-q in 1Q2024: Knight Frank
Prime business rents in the Raffles Area and Marina Bay district went up to an average of $11.20 psf each month (pm) in 1Q2024, a 0.6% increase q-o-q, according to a report by Knight Frank Singapore released on March 25.
Yeo indicates that the interest for prime office remains high because Singapore continues to entice international companies. This is due to the large pool of expertise, tax incentives, a diversified economy and contemporary framework.
The lease growth was supported by resumptions, keeping term status tight at 95.6% for the Raffles Place and Marina Bay precinct and 94.7% for the overall CBD. Calvin Yeo, supervising director of occupant strategy and answers at Knight Frank Singapore, adds in that the revivals were done at a little higher rents as companies preferred to hold as opposed to relocating or widening to keep away from capital expenditure.
A brand-new source of prime business offices is even expected to be completed this year, raising the remaining supply. This consists of IOI Central Blvd Towers at 2 Central Blvd, which is expected to generate 1.26 million sq ft of office space, and 33-storey Keppel South Central throughout Hoe Chiang Road in Tanjong Pagar.
However, he believes office leas may flatten out in 2H2024 as technology firms and global banks lay off staff and combine company functions, which can bring about portions of office being reverted upon contract expiry.
Meanwhile, Yeo expects that businesses must close in this year with “careful optimism,” given that geopolitical stress cause a significant threat to organization development and procedures. He also assumes inhabitance levels to continue to be tight at superior office complex that can regulate a premium, backed by Singapore’s low jobless level and the city-state’s placement as a premier company venue. Knight Frank approximates leas to expand moderately in between 1% and 3% in 2024.
